Stocks Climb Ahead of Nvidia’s Earnings Results

Geopolitical Risks - President Trump indicated that Iranian officials are pursuing nuclear ambitions, raising speculation about a potential military strike on Iran [1] - US-Iran nuclear talks are set to resume, with Iranian Foreign Minister expressing optimism for a diplomatic solution [1] Tariffs and Trade - President Trump reaffirmed commitment to tariffs, with a new 10% global tariff implemented following a Supreme Court ruling [2] - There is a potential increase of the global tariff rate to 15%, with a formal order in progress [2] Stock Market Performance - Stock indexes are rising, with the S&P 500 and Nasdaq 100 reaching 1.5-week highs, driven by AI-infrastructure companies and chipmakers [3] - Nvidia's Q4 revenue is estimated at $65.91 billion, with market anticipation for its earnings results [3] Economic Indicators - US MBA mortgage applications increased by 0.4%, with the average 30-year fixed mortgage rate falling to 6.09% [3] - Initial weekly unemployment claims are expected to rise by 10,000 to 216,000 [4] Earnings Season - Over 88% of S&P 500 companies have reported earnings, with 74% beating expectations [5] - S&P earnings growth is projected to increase by 8.4% in Q4, marking ten consecutive quarters of year-over-year growth [5] International Markets - European stock markets are performing well, with the Euro Stoxx 50 reaching a record high [6] - China's Shanghai Composite and Japan's Nikkei Stock 225 also saw significant gains [6] Interest Rates - The 10-year T-note yield increased to 4.044%, influenced by stock market strength [7] - European government bond yields are rising, with the 10-year German bund yield at 2.708% [8] Company Movements - AI-infrastructure and chipmaker stocks are gaining, with Western Digital up over 5% [10] - Software stocks are also performing well, with Thomson Reuters up more than 9% [11] - Cryptocurrency-exposed stocks are rallying, with Bitcoin up over 5% [12] Sector Performance - Homebuilding stocks are declining due to lack of new policy initiatives from President Trump [13] - Alcoholic beverage producers are facing declines after Diageo cut its sales guidance [14] Notable Earnings Reports - Cava Group forecasts a 3% to 5% increase in comparable sales, exceeding consensus [15] - Axon Enterprise reported Q4 adjusted EPS of $2.15, significantly above consensus [14]